Page 287 - ACFE Fraud Reports 2009_2020

Median loss based on Presence of Anti-Fraud controls
Control 17 percent of Cases implemented Control in place Control Not in place percent Reduction
Hotline 48.6% $100,000 $245,000 59.2%
Employee Support Programs 44.8% $100,000 $244,000 59.0%
Surprise Audits 28.9% $97,000 $200,000 51.5%
Fraud Training for Employees 39.6% $100,000 $200,000 50.0%
Fraud Training for Managers/Execs 41.5% $100,000 $200,000 50.0%
Job Rotation/Mandatory Vacation 14.6% $100,000 $188,000 46.8%
Code of Conduct 69.9% $140,000 $262,000 46.6%
Anti-Fraud Policy 39.0% $120,000 $200,000 40.0%
Management Review 53.3% $120,000 $200,000 40.0%
External Audit of ICOFR 59.3% $140,000 $215,000 34.9%
Internal Audit/FE Department 66.4% $145,000 $209,000 30.6%
Independent Audit Committee 53.2% $140,000 $200,000 30.0%
Management Certification of F/S 58.9% $150,000 $200,000 25.0%
External Audit of F/S 76.1% $150,000 $200,000 25.0%
Rewards for Whistleblowers 7.4% $119,000 $155,000 23.2%

Similarly, we compared the duration of fraud schemes at organizations with and without anti-fraud controls. As reflected
in the table below, the presence of each control correlated with a reduction in the duration of fraud. We found it interest-
ing that the controls associated with the greatest reduction in scheme lengths are not the same as the ones that had the
most impact on median loss.

duration based on Presence of Anti-Fraud controls
Control 17 percent of Cases implemented Control in place Control Not in place percent Reduction
Management Review 53.3% 12 months 24 months 50.0%
Internal Audit/FE Department 66.4% 14 months 24 months 41.7%
External Audit of ICOFR 59.3% 15 months 24 months 37.5%
Code of Conduct 69.9% 15 months 24 months 37.5%
Surprise Audits 28.9% 12 months 19 months 36.8%
Hotline 48.6% 13 months 20 months 35.0%
Management Certification of F/S 58.9% 15 months 23 months 34.8%
Rewards for Whistleblowers 7.4% 12 months 18 months 33.3%
Job Rotation/Mandatory Vacation 14.6% 12 months 18 months 33.3%
External Audit of F/S 76.1% 16 months 24 months 33.3%
Anti-Fraud Policy 39.0% 13 months 18 months 27.8%
Fraud Training for Employees 39.6% 13 months 18 months 27.8%
Fraud Training for Managers/Execs 41.5% 13 months 18 months 27.8%
Independent Audit Committee 53.2% 15 months 20 months 25.0%
Employee Support Programs 44.8% 15 months 18 months 16.7%

17 KeY:
• External Audit of F/S = Independent external audits of the organization’s financial statements
• Internal Audit / FE Department = Internal audit department or fraud examination department
• External Audit of ICOFR = Independent audits of the organization’s internal controls over financial reporting
• Management Certification of F/S = Management certification of the organization’s financial statements
2010 RepoRt to the NAtioNs ON OccuPATIONAl FRAUD ANd AbuSE | 43